Microchip Technology (NASDAQ:MCHP) Stock Price Up 7.4% – Here’s Why

Microchip Technology Incorporated (NASDAQ:MCHP)’s share price traded up 7.4% during trading on Wednesday . The stock traded as high as $61.97 and last traded at $62.15. 6,293,783 shares were traded during mid-day trading, a decline of 29% from the average session volume of 8,885,386 shares. The stock had previously closed at $57.86.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Rosenblatt Securities reaffirmed a “buy” rating and issued a $90.00 price target on shares of Microchip Technology in a report on Thursday, February 6th. TD Cowen cut their price target on Microchip Technology from $80.00 to $70.00 and set a “hold” rating for the company in a report on Wednesday, November 6th. Morgan Stanley cut their price target on Microchip Technology from $71.00 to $58.00 and set an “equal weight” rating for the company in a report on Tuesday, February 4th. Jefferies Financial Group cut their price target on Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a report on Wednesday, November 6th. Finally, KeyCorp cut their price target on Microchip Technology from $70.00 to $60.00 and set an “overweight” rating for the company in a report on Friday, February 7th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $77.11.

Microchip Technology Stock Performance

The firm has a market capitalization of $32.84 billion, a P/E ratio of 109.05 and a beta of 1.50. The stock has a 50-day moving average of $56.68 and a 200 day moving average of $68.16. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.23 and a current ratio of 2.25.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, February 6th. The semiconductor company reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.15). Microchip Technology had a return on equity of 12.62% and a net margin of 6.49%. On average, research analysts anticipate that Microchip Technology Incorporated will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 7th. Shareholders of record on Monday, February 24th will be given a $0.455 dividend. The ex-dividend date of this dividend is Monday, February 24th. This represents a $1.82 dividend on an annualized basis and a yield of 2.98%. Microchip Technology’s payout ratio is 325.00%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Mainstream Capital Management LLC bought a new position in Microchip Technology in the 4th quarter valued at $26,000. Rakuten Securities Inc. boosted its position in Microchip Technology by 309.5% in the 4th quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 359 shares during the last quarter. Prospera Private Wealth LLC bought a new position in Microchip Technology in the 3rd quarter valued at $29,000. OFI Invest Asset Management bought a new position in Microchip Technology in the 4th quarter valued at $29,000. Finally, Financial Life Planners bought a new position in Microchip Technology in the 4th quarter valued at $32,000. 91.51% of the stock is currently owned by institutional investors.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.